What is difference between contingency and retained recruitment?

What is contingency recruitment?

Contingency recruitment is a type of recruitment where an organization contracts with a recruitment agency to fill vacant positions and only is paid a fee if they are successful in finding a candidate that is hired by the organization. This type of arrangement is often used when an organization does not have the time or resources to conduct its own recruitment.

What is retained recruitment?

Retained recruitment is a type of recruitment where an organization pays a recruitment firm a retainer fee in order to secure their services. The firm then provides a guarantee that they will find candidates that meet the organization's specific needs and requirements. This type of recruitment is often used for high-level positions or when an organization needs to fill a position quickly.

Differences and pros and cons

There are a few key differences between contingency and retained recruitment.

The first is that, with contingency recruitment, the recruitment firm is paid only if they are successful in placing a candidate with the company. In retained recruitment, the recruitment firm is paid upfront, regardless of whether or not they are successful in placing a candidate. This makes retained recruitment a much more costly option.

Another key difference is that, with contingency recruitment, the recruitment firm typically has a larger pool of candidates to choose from. This is because they are not exclusive to any one company and can therefore source candidates from a variety of places. In retained recruitment, the recruitment firm typically works with a smaller pool of candidates, as they are exclusive to one company.

Lastly, with contingency recruitment, the recruitment firm typically works on a larger number of open positions at any given time. This is because they are not exclusive to one company and can therefore work on multiple positions at once. In retained recruitment, the recruitment firm typically works on fewer open positions, as they are exclusive to one company.